1. Remedial Action Scheme Workshop RAS Workshop May 9, 2016

2. 2 Antitrust Admonition ERCOT strictly prohibits Market Participants and their employees who are participating in ERCOT activities from using their participation in ERCOT activities as a forum for engaging in practices or communications that violate the antitrust laws. The ERCOT Board has approved guidelines for members of ERCOT Committees, Subcommittees and Working Groups to be reviewed and followed by each Market Participant attending ERCOT meetings. If you have not received a copy of these Guidelines, copies are available at the Client Relations desk. Please remember your ongoing obligation to comply with all applicable laws, including the antitrust laws. RAS Workshop May 9, 2016

3. 3 Safety RAS Workshop May 9, 2016

4. 4 Agenda RAS Workshop May 9, 2016 1.New RAS Definition 2.Review of Standards PRC-012-1 through PRC-017-1 3.Upcoming Standards PRC-012-2 4.Existing SPSs and new classification 5.Review draft NPRR 6.Review draft NOGRR 7.Review draft PGRR 8.Adjourn

5. 5 U.S. Regulatory Status Remedial Action Scheme Standards ●PRC-012-1 Remedial Action Scheme Review Procedure ●PRC-013-1 Remedial Action Database ●PRC-014-1 Remedial Action Scheme Assessment ●PRC-015-1 Remedial Action Scheme Data and Documentation ●PRC-016-1 Remedial Action Scheme Misoperations ●PRC-017-1 Remedial Action Scheme Maintenance and Testing ●Approved by FERC on November 19, 2015 (Order No. 818)  RAS definition effective 4/1/2017  PRC-015-1, PRC-016-1 and PRC-017-1 enforcement date is 4/1/2017  PRC-012-1, PRC-013-1, and PRC-014-1 will not be enforceable RAS Workshop May 9, 2016

6. 6 Remedial Action Scheme Definition RAS Workshop May 9, 2016 Old Definition An automatic protection system designed to detect abnormal or predetermined system conditions, and take corrective actions other than and/or in addition to the isolation of faulted components to maintain system reliability. Such action may include changes in demand, generation (MW and Mvar), or system configuration to maintain system stability, acceptable voltage, or power flows. An SPS does not include (a) underfrequency or undervoltage load shedding or (b) fault conditions that must be isolated or (c) out-of-step relaying (not designed as an integral part of an SPS). Also called Remedial Action Scheme. New Definition A scheme designed to detect predetermined System conditions and automatically take corrective actions that may include, but are not limited to, adjusting or tripping generation (MW and Mvar), tripping load, or reconfiguring a System(s). RAS accomplish objectives such as: Meet requirements identified in the NERC Reliability Standards; Maintain Bulk Electric System (BES) stability; Maintain acceptable BES voltages; Maintain acceptable BES power flows; Limit the impact of Cascading or extreme events.

7. 7 Remedial Action Scheme Definition New Definition The following do not individually constitute a RAS: Protection Systems installed for the purpose of detecting Faults on BES Elements and isolating the faulted Elements Schemes for automatic underfrequency load shedding (UFLS) and automatic undervoltage load shedding (UVLS) comprised of only distributed relays Out-of-step tripping and power swing blocking Automatic reclosing schemes Schemes applied on an Element for non-Fault conditions, such as, but not limited to, generator loss-of-field, transformer top-oil temperature, overvoltage, or overload to protect the Element against damage by removing it from service RAS Workshop May 9, 2016

8. 8 Remedial Action Scheme Definition New Definition The following do not individually constitute a RAS: Controllers that switch or regulate one or more of the following: series or shunt reactive devices, flexible alternating current transmission system (FACTS) devices, phase-shifting transformers, variable-frequency transformers, or tap- changing transformers; and, that are located at and monitor quantities solely at the same station as the Element being switched or regulated FACTS controllers that remotely switch static shunt reactive devices located at other stations to regulate the output of a single FACTS device Schemes or controllers that remotely switch shunt reactors and shunt capacitors for voltage regulation that would otherwise be manually switched Schemes that automatically de-energize a line for a non-Fault operation when one end of the line is open RAS Workshop May 9, 2016

9. 9 Remedial Action Scheme Definition New Definition The following do not individually constitute a RAS: Schemes that provide anti-islanding protection (e.g., protect load from effects of being isolated with generation that may not be capable of maintaining acceptable frequency and voltage) Automatic sequences that proceed when manually initiated solely by a System Operator Modulation of HVdc or FACTS via supplementary controls, such as angle damping or frequency damping applied to damp local or inter-area oscillations Sub-synchronous resonance (SSR) protection schemes that directly detect sub- synchronous quantities (e.g., currents or torsional oscillations) Generator controls such as, but not limited to, automatic generation control (AGC), generation excitation [e.g., automatic voltage regulation (AVR) and power system stabilizers (PSS)], fast valving, and speed governing RAS Workshop May 9, 2016

10. 10 PRC-012-1, Remedial Action Scheme Review ●Requirement 1:  Each Regional Reliability Organization with a Transmission Owner, Generator Owner, or Distribution Providers that uses or is planning to use a RAS shall have a documented Regional Reliability Organization RAS review procedure to ensure that RAS comply with Regional criteria and NERC Reliability Standards.  For the purposes of this requirement, ERCOT is responsible for the RAS review procedure.  RAS definition, data, documentation, testing, and maintenance requirements will be outlined in the Nodal Operating Guides.  R1.3 and R1.4 refer to TPL-001-0, TPL-002-2 and TPL-003-0 which are retired. For the purposes of this requirement, TPL-001-4 will be used as the basis for planning performance. RAS Workshop May 9, 2016

11. 11 PRC-013-1, Remedial Action Scheme Database ●Requirement 1:  The Regional Reliability Organization that has a Transmission Owner, Generator Owner, or Distribution Provider with a RAS installed shall maintain a RAS database.  For the purposes of this requirement, ERCOT will maintain the RAS database on the MIS. RAS Workshop May 9, 2016

12. 12 PRC-014-1, Remedial Action Scheme Assessment ●Requirement 1:  The Regional Reliability Organization shall assess the operation, coordination, and effectiveness of all RAS installed in its Region at least once every five years for compliance with NERC Reliability Standards and Regional criteria.  For the purposes of this requirement, ERCOT will conduct the five year RAS assessment. RAS Workshop May 9, 2016

13. 13 PRC-015-1, Remedial Action Scheme Data ●Requirement 1:  The Transmission Owner, Generator Owner, and Distribution Provider that owns a RAS shall maintain a list of and provide data for existing and proposed RAS as specified in Reliability Standard PRC-013-1 R1. ●Requirement 2:  The Transmission Owner, Generator Owner, and Distribution Provider that owns a RAS shall have evidence it reviewed new or functionally modified RAS in accordance with the Regional Reliability Organization’s procedures as defined in Reliability Standard PRC-012-1_R1 prior to being placed in service.  For the purposes of these requirements, RAS data and documentation requirements will be outlined in the Nodal Operating Guides. RAS Workshop May 9, 2016

14. 14 PRC-016-1, Remedial Action Scheme Misoperations ●Requirement 1:  The Transmission Owner, Generator Owner, and Distribution Provider that owns a RAS shall analyze its RAS operations and maintain a record of all misoperations in accordance with the Regional RAS review procedure specified in Reliability Standard PRC-012-1_R1. ●Requirement 2:  The Transmission Owner, Generator Owner, and Distribution Provider that owns a RAS shall take corrective actions to avoid future misoperations.  For the purposes of these requirements, RAS misoperation definitions, analysis of misoperations, and misoperation reporting requirements will be outlined in the Nodal Operating Guides. RAS Workshop May 9, 2016

15. 15 PRC-017-1, Remedial Action Scheme Testing ●Requirement 1:  The Transmission Owner, Generator Owner, and Distribution Provider that owns a RAS shall have a system maintenance and testing program(s) in place.  Testing and maintenance of RAS components that meet the definition of a Protection System component are now covered under PRC-005-6.  Requirements for functional testing of a RAS will be outlined in the Nodal Operating Guides. RAS Workshop May 9, 2016

16. 16 In Development ●PRC-012-2  Removal of “fill-in-the-blank” requirements  Final Ballot on April 29, 2016. Received 80.4% approval  PRC-012-2 replaces/retires six legacy standards (upon full implementation)  Introduces concept of “limited impact” RAS, defined as “A RAS designated as limited impact cannot, by inadvertent operation or failure to operate, cause or contribute to BES Cascading, uncontrolled separation, angular instability, voltage instability, voltage collapse, or unacceptably damped oscillations.”  Introduces “RAS-Entity,” defined as the Transmission Owner, Generator Owner, or Distribution Provider that owns all or part of a RAS RAS Workshop May 9, 2016

17. 17 PRC-012-1 Comparison to PRC-012-2 OLD REQUIREMENT PRC-012-1 R1: Each Regional Reliability Organization with a Transmission Owner, Generator Owner, or Distribution Providers that uses or is planning to use a RAS shall have a documented Regional Reliability Organization RAS review procedure to ensure that RAS comply with Regional criteria and NERC Reliability Standards. NEW REQUIREMENT PRC-012-2 R2: Each Reliability Coordinator that receives Attachment 1 information pursuant to Requirement R1 shall, within four full calendar months of receipt or on a mutually agreed upon schedule, perform a review of the RAS in accordance with Attachment 2, and provide written feedback to each RAS ‐ entity. R3: Prior to placing a new or functionally modified RAS in ‐ service or retiring an existing RAS, each RAS ‐ entity that receives feedback from the reviewing Reliability Coordinator(s) identifying reliability issue(s) shall resolve each issue to obtain approval of the RAS from each reviewing Reliability Coordinator. RAS Workshop May 9, 2016

18. 18 PRC-013-1 Comparison to PRC-012-2 OLD REQUIREMENT PRC-013-1 R1: The Regional Reliability Organization that has a Transmission Owner, Generator Owner, or Distribution Provider with a RAS installed shall maintain a RAS database. NEW REQUIREMENT PRC-012-2 R9: Each Reliability Coordinator shall update a RAS database containing, at a minimum, the information in Attachment 3 at least once every twelve full calendar months. RAS Workshop May 9, 2016

19. 19 PRC-014-1 Comparison to PRC-012-2 OLD REQUIREMENT PRC-014-1 R1: The Regional Reliability Organization shall assess the operation, coordination, and effectiveness of all RAS installed in its Region at least once every five years for compliance with NERC Reliability Standards and Regional criteria. NEW REQUIREMENT PRC-012-2 R4: Each Planning Coordinator, at least once every five full calendar years, shall: Perform an evaluation of each RAS within its planning area to determine whether: The RAS mitigates the System condition(s) or Contingency(ies) for which it was designed. The RAS avoids adverse interactions with other RAS, and protection and control systems. The inadvertent operation of the RAS or the failure of the RAS to operate does not cause or contribute to BES Cascading, uncontrolled separation, angular instability, voltage instability, voltage collapse, or unacceptably damped oscillations. RAS Workshop May 9, 2016

20. 20 PRC-015-1 Comparison to PRC-012-2 OLD REQUIREMENT PRC-015-1 R1: The Transmission Owner, Generator Owner, and Distribution Provider that owns a RAS shall maintain a list of and provide data for existing and proposed RAS as specified in Reliability Standard PRC-013-1 R1. NEW REQUIREMENT PRC-012-2 R1: Prior to placing a new or functionally modified RAS in ‐ service or retiring an existing RAS, each RAS ‐ entity shall provide the information identified in Attachment 1 for review to the Reliability Coordinator(s) where the RAS is located. RAS Workshop May 9, 2016

21. 21 PRC-016-1 Comparison to PRC-012-2 OLD REQUIREMENT PRC-016-1 R1: The Transmission Owner, Generator Owner, and Distribution Provider that owns a RAS shall analyze its RAS operations and maintain a record of all misoperations in accordance with the Regional RAS review procedure specified in Reliability Standard PRC-012-1 R1. NEW REQUIREMENT PRC-012-2 R5: Each RAS ‐ entity, within 120 full calendar days of a RAS operation or a failure of its RAS to operate when expected, or on a mutually agreed upon schedule with its reviewing Reliability Coordinator(s), shall: Participate in analyzing the RAS operational performance; and Provide the results of RAS operational performance analysis that identified any deficiencies to its reviewing Reliability Coordinator(s). RAS Workshop May 9, 2016

22. 22 PRC-016-1 Comparison to PRC-012-2 OLD REQUIREMENT PRC-016-1 R2: The Transmission Owner, Generator Owner, and Distribution Provider that owns a RAS shall take corrective actions to avoid future misoperations. NEW REQUIREMENT PRC-012-2 R6: Each RAS ‐ entity shall participate in developing a Corrective Action Plan (CAP) and submit the CAP to its reviewing Reliability Coordinator(s) within six full calendar Months. R7: Each RAS ‐ entity shall, for each of its CAPs developed pursuant to Requirement R6: Implement the CAP. Update the CAP if actions or timetables change. Notify each reviewing Reliability Coordinator if CAP actions or timetables change and when the CAP is completed. RAS Workshop May 9, 2016

23. 23 PRC-017-1 Comparison to PRC-012-2 OLD REQUIREMENT PRC-017-1 R1: The Transmission Owner, Generator Owner, and Distribution Provider that owns a RAS shall have a system maintenance and testing program(s) in place. NEW REQUIREMENT PRC-012-2 R8: Each RAS ‐ entity shall participate in performing a functional test of each of its RAS to verify the overall RAS performance and the proper operation of non ‐ Protection System components RAS Workshop May 9, 2016

24. 24 Questions? RAS Workshop May 9, 2016